The planned development follows the restructuring of leases on the site by property giants Grosvenor and Derwent who have now formalised a joint venture to redevelop the site.
The 1.5-acre site at 1-5 Grosvenor Place, SW1, is currently used as offices held under long lease by Derwent, with the freehold held by Grosvenor.
The 168,000 sq ft of offices on the site could be “increased significantly” according to the duo to create a mixed-use redevelopment including commercial and residential as well as a luxury hotel.
The nine-storey block on the site at the moment consists of eight floors of office space with residential on the top floor.
Architects are in the process of being selected to transform and extend the existing floor plate in a scheme which experts estimate will cost circa £200- £250m.
John Burns, Chief Executive at Derwent London, said: “Having assembled the ownership of this site over many years, this initiative unlocks the opportunity for a substantial redevelopment in one of the best locations in the West End.”
Giles Clarke, Grosvenor Britain & Ireland’s Executive Director with responsibility for its London estate, said: “Signing this deal with Derwent London means we can now start working up detailed plans for this important site.
“This is one of the most exciting development opportunities currently available in prime central London.”
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